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Dick Law Firm, PLLC Dick Law Firm, PLLC
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How to Prove Insurance Bad Faith


Every insurance policy acts as a legally binding contract between you and the insurance carrier and if you are like the average Texan, you have insurance coverage for multiple areas such as your home, car, and health. When accidents do occur, it is important to know that the insurance you have paid for will be there when you need it. It is equally important to know what to do when it isn’t.

When insurance companies look to support their bottom line by delaying or denying policyholder’s claims, they are acting in “bad faith.” To prove a company acted in bad faith, you must be able to show that they acted unreasonably and did not honor the terms and conditions set by your insurance policy. Below are four steps to take if you are ever forced to deal with an insurance company who is acting in bad faith.

  1. Know the signs of bad faith: Remember that insurance companies are corporations which operate for profit and may look to increase their bottom line wherever they can. By knowing what constitutes bad faith, you can be ready to take action immediately.
    Signs of bad faith include, but are not limited to:
  • Delaying or refusing to investigate a claim
  • Denying a claim without an explanation
  • Misrepresenting the coverage provided to the insured
  • Undervaluing policyholder claims
  1. Know your own policy: Your policy with the insurance company dictates exactly what will be covered by the payments you make each month. It is a good idea to get a hold of your contract and read it thoroughly to ensure you have a solid understanding of the coverage it provides. If you request a copy of your policy after filling claim, make sure it is dated for before your accident. This can avoid last minute alterations made by the insurance company. Another good reason to review your policy is that sections or terms found to be unfair can be contested.
  2. Collect and review evidence: While an accident may have already occurred, you can still collect evidence to help strengthen insurance and legal claims. Take pictures and video of any damage to property or injuries that were sustained. If possible, ask witnesses about the accident and be sure to document each response. It is helpful to create a file with all the documentation related to your insurance claim.
  3. Take action and hire an attorney: If you think your insurance company has acted in bad faith, contact our Houston insurance bad faith lawyer at Dick Law Firm. Our firm focuses exclusively on insurance cases and comes highly recommended by past clients. Do not believe insurance companies that tell you that a claim will be worth more than a settlement after legal fees. Companies who are found to have acted in bad faith may be required to pay the legal fees of the insured. Even if you have already accepted an underpaid claim, our firm may still be able to review your case.

Our firm offers free consultations for potential clients looking to discuss their claim. Call (844) 447-3234 and talk to a lawyer today!